China's sustainability

Comments on Robert Gottliebsen “Is China's growth an illusion?” 10/03/2010, http://www.businessspectator.com.au/bs.nsf/Article/Can-China-contiue-pd20100310-3DSPU?OpenDocument&src=sph

With all respect to John Garnaut and those mentioned in the article including Prof Yu, I think they either all don't understand the development process especially the Japanese and some other East Asian economies showed in the past and are afraid of massive changes, or they are used to some conventional economics or statics and traditional bubble theories.

They all missed the point that the average income in China is still low and it is in a stage of rapid industrialisation and urbanisation.

While such investments may be serious problems in most economies, they will not be in China. Its physical stock including infrastructure in many parts of the country is far from a saturation point and an increase will improve its productivity.

Sometimes experts (albeit with partial knowledge of economics or economic development) can be completely confused by rapid change or unprecedented scale.

One needs some common sense and logic within a cool head.

Further, it would be interesting to see who are in illusion.

The reality will teach some experts a useful lesson.